THIRD SEMESTER
3rd Semester
Name of the Program: UG Program in Economics
Course Code: ES21001 (Major)
Name of the Course: Mathematical Methods for Economics
Course Credits No. of Hours per Week Total No. of Teaching
Hours (each credit = 14
hours)
Lecture Tutorial Practical/
Practice
4 Credits 3 1 0 56 Hrs
Pedagogy: Classroom lectures, Problem-solving tutorials, Group discussions, Seminar, and
Case studies.
Course Objectives: This course purports to provide a rigorous introduction of several areas
of mathematics that are widely used in the domain of microeconomics, macroeconomics,
economics of growth, and econometrics.
Course Outcomes: On successful completion of the course, the students will be able to:
a) Analyse economic theories using mathematical techniques.
b) Get a thorough knowledge of the various mathematical tools used in economic
analysis.
c) Have a good knowledge of the functions.
d) Understand the application of matrices, differentiation, and integration in
economics.
e) Handle complicated real-life economics problems using mathematical tools learned
from this course.
Syllabus: Hours
Unit 1: Relations and Functions 11
Sets and set operations; Venn diagrams; Relations; Functions and their properties; Types of
functions: constant, polynomial, rational, exponential, and logarithmic; Graphical
representation of functions; Limit and continuity of functions; Limit theorems.
Unit 2: Matrices and Determinants 11
Matrices: concept, types, matrix algebra, transpose, inverse, rank; Determinants: Concept,
properties, solving problems using properties of determinants, the solution to a system of
equations: Cramer’s rule and matrix inversion method.
Unit 3: Derivative of a Function 11
Rate of change and derivative; Derivative and slope of a curve; Continuity and
differentiability of a function; Rules of differentiation for a function of one variable;
Application: Relationship between total, average, and marginal functions.
Unit 4: Functions of Two or More Independent Variables 11
Partial differentiation techniques; Application of partial derivatives in Economics; Elasticity
of a function: Demand and supply elasticity, cross and partial elasticity.
Unit 5: Integration of functions 12
Indefinite integrals: Rules of integration; Techniques of integration: substitution rule,
integration by parts and partial fraction; Definite integrals; Application of integration in
economics
Skill Development Activities/Practical Exercise:
a) PPT presentation
b) Quiz
c) Assignment
d) Seminar/ Debate
Textbooks:
1. Chiang, A. C. and K. Wainwright (2017), Fundamental Methods of Mathematical
Economics, 4th Edition, McGraw Hill Education, New Delhi.
2. Simon, C. P. and L. Blume (2018), Mathematics for Economists, Viva Books, New
Delhi.
3. Sydester, K., P. Hammond, A. Storm, and A. Carvajal (2018), Essential Mathematics
for Economic Analysis, 5th Edition, Pearson Education India, New Delhi.
4. Mehta, B. C. and Madnani G. M. K. (2017), Mathematics for Economists, S Chand &
Sons, New Delhi.
Additional Resources:
1. Aggarwal, S. C., R. K. Rana and L. Gupta (2022), Mathematics for Economists, Latest
Edition, VK Global Publications Pvt Ltd, New Delhi.
2. Allen, R. G. D. (2014), Mathematical Analysis for Economists, Trinity Press, US.
3. Bose, D. (2018), An Introduction to Mathematical Economics, Himalaya Publishing
House, Mumbai.
